What options does one have when you have a car loan, negative equity? is there a "good" solution?

Question

a trade in? sell privately?....what's the best? ...hold on to it....????

Answer 1

Hang onto the car and pay it off. At some point in the loan you will eventually have positive equity, so just keep plugging away until you reach that point.

If you trade in the car, you would have to "trade down" to something significantly less expensive since the negative equity of your current loan would be added into your new loan, as well as the fact that the dealer will only give you "trade-in value" for your existing car, while selling you a new car at "retail value" -- so that's another hit you're taking in the pocket book.

If you sell your car privately, you may get more for your current car than if you'd traded it in to a dealer, but that also means you'd be responsible for paying off the negative equity immediately. For example, if you agree to sell it for $10k and the loan balance is $12k, you'd have to cough up that extra $2k before you could officially sell the car -- since technically, you do not own the car until you've paid off the entire $12k loan, at which point the lender releases the title to you.

Answer 2

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Answer 3

If you are trying to get out of a negative equity situation, the only thing that matters is that you can get as much for the car as possible. A private sale is the best way to get more for the vehicle. The only thing is that you will have to make up the difference either now or later.

Answer 4

If you trade, you will still be paying for both, if you sell privately you will lose money. Plus it really isn't yours to sell, it belongs to the finance company. Best bet it to hold on to it until you aren't upside down any more.

Answer 5

i visit make a wild guess that it is an american made truck or suv? We extra proper call a spade a spade right here. You have been an fool for paying for with out doing any examine as to resale fee. the only reasonable ingredient you're able to do is force it untill you have paid it down adequate to sell. the only people who would take that as commerce are the yank mfg's and that they are going to placed you good lower back interior an identical boat. it is unlucky, yet American automobiles do no longer carry their fee in any respect. they may well be extra decrease priced to purchase, yet you presently be attentive to which you pay dearly for it interior the long-term. wish you artwork some thing out.